Apple Q1 2008 earnings call

4:47

OK - the call starts in abut 12 minutes -- we're just going to be setting things up.

Tuesday January 22, 2008 4:47

4:47

Anyone who wants to watch the feed live, you need to have QuckTime

Tuesday January 22, 2008 4:47

4:49

www.apple.com/quicktime/qtv/earningsq108/

Tuesday January 22, 2008 4:49

4:49

This is going to be the TUAW live blog of Apple's Q1 financial reports call

Tuesday January 22, 2008 4:49

4:49

[Comment From LXLX: ]

what is this?

Tuesday January 22, 2008 4:49 LX

4:49

[Comment From pipi: ]

down 13%

Tuesday January 22, 2008 4:49 pi

4:49

[Comment From GuestGuest: ]

ahhhh...the stock tanked!

Tuesday January 22, 2008 4:49 Guest

4:49

[Comment From terssiterssi: ]

Apple announced revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share.

Tuesday January 22, 2008 4:49 terssi

4:49

Thanks Terssi!

Tuesday January 22, 2008 4:49

4:50

[Comment From terssiterssi: ]

http://www.apple.com/pr/library/2008/01/22results.html

Tuesday January 22, 2008 4:50 terssi

4:50

[Comment From GuestGuest: ]

that's common to happen.

Tuesday January 22, 2008 4:50 Guest

4:50

[Comment From terssiterssi: ]

http://www.apple.com/pr/library/2008/01/22results.html

Tuesday January 22, 2008 4:50 terssi

4:51

We're just waiting for the call to start here. --Mike Rose (MR)

Tuesday January 22, 2008 4:51

4:51

Well, it's hard to tell today because the whole market tanked

Tuesday January 22, 2008 4:51

4:51

[Comment From pipi: ]

After Hours $138.27Change: -17.37 -11.16%Volume: 3,661,729

Tuesday January 22, 2008 4:51 pi

4:51

But the reports look promising (scannign it now) -- Christina Warren (CW)

Tuesday January 22, 2008 4:51

4:51

Apple® today announced financial results for its fiscal 2008 first quarter ended December 29, 2007. The Company posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share. These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 31.2 percent in the year-ago quarter. International sales accounted for 45 percent of the quarter’s revenue.

Tuesday January 22, 2008 4:51

4:52

I think that analysts were projecting $1.60 a share -- CW

Tuesday January 22, 2008 4:52

4:53

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Tuesday January 22, 2008 4:53

4:53

They were predicting $1.62 a share, they did $1.78 -- CW

Tuesday January 22, 2008 4:53

4:54

[Comment From ChrisChris: ]

Didn't this call already happen?

Tuesday January 22, 2008 4:54 Chris

4:54

Chris -- no, it's starting momentarily. --mr

Tuesday January 22, 2008 4:54

4:54

No, it will start in a few minutes -- CW (2 PM PST, 5 PM EST). After markets close

Tuesday January 22, 2008 4:54

4:54

Callers are joining. Call should begin shortly. --mr

Tuesday January 22, 2008 4:54

4:55

Wht Mike said -- CW

Tuesday January 22, 2008 4:55

4:56

Apple at 141.42 in after hours trading --mr

Tuesday January 22, 2008 4:56

4:56

[Comment From quickquick: ]

139.82 real time

Tuesday January 22, 2008 4:56 quick

4:56

[Comment From Scott McNultyScott McNulty: ]

ahh, financial reports, how exciting!

Tuesday January 22, 2008 4:56 Scott McNulty

4:56

[Comment From RyanRyan: ]

Do they usually release the figures before the markets have closed like this? That seemed odd to me.

Tuesday January 22, 2008 4:56 Ryan

4:57

Ryan --actually the market closed at 4 pm ET. This is standard operating procedure. --mr

Tuesday January 22, 2008 4:57

4:57

[Comment From DamianDamian: ]

http://biz.yahoo.com/prnews/080122/aqtu214.html?.v=16 for all the details

Tuesday January 22, 2008 4:57 Damian

4:57

And some companies do it during market hours (Bank of America this morning)

Tuesday January 22, 2008 4:57

4:57

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Tuesday January 22, 2008 4:57

4:58

Yikes. --MR

Tuesday January 22, 2008 4:58

4:58

Indeed -- CW

Tuesday January 22, 2008 4:58

4:58

[Comment From P PotP Pot: ]

Ya'll should do Macworld in this manner.

Tuesday January 22, 2008 4:58 P Pot

4:58

PPot -- we thought about it. As it happened, CoverItLive had some challenges during the keynote, but maybe next time. --mr

Tuesday January 22, 2008 4:58

4:59

[Comment From JGJG: ]

The reason the stock tanked is not the current quarter.. it is their outlook for the next.. at 0.96 it does not meet analyst's estimates

Tuesday January 22, 2008 4:59 JG

4:59

Apple shipped 2,319,000 Macintosh® computers, representing 44 percent unit growth and 47 percent revenue growth over the year-ago quarter. The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 2,315,000. “We’re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks.”

Tuesday January 22, 2008 4:59

4:59

That's phenomenal (rvenue and unit growth forMacs) -- CW

Tuesday January 22, 2008 4:59

4:59

[Comment From Patrick DPatrick D: ]

near real time updates of the stock price in after hours trading: http://finance.google.com/finance?client=ob&q=AAPL

Tuesday January 22, 2008 4:59 Patrick D

4:59

“Apple’s revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter’s record-breaking results,” said Peter Oppenheimer, Apple’s CFO. “Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $.94.”

Tuesday January 22, 2008 4:59

5:00

The call has not begun yet -- still lovely music... --mr

Tuesday January 22, 2008 5:00

5:00

[Comment From quickquick: ]

Apple usually lower guidance for the next quarter and with the economy as it is it is a smart idea

Tuesday January 22, 2008 5:00 quick

5:00

Quick - Agreed.

Tuesday January 22, 2008 5:00

5:00

Note that Steve Jobs does not do the announcement. It's Tim Cook and Peter Oppenheimer usually. --mr

Tuesday January 22, 2008 5:00

5:00

XX - because of the international markets. It's affecting everything.

Tuesday January 22, 2008 5:00

5:01

[Comment From MCMC: ]

Will this live blog work on my iphone?

Tuesday January 22, 2008 5:01 MC

5:02

MC -- probably not. sorry! --mr

Tuesday January 22, 2008 5:02

5:02

Chat legend: if a comment has no initials, it's Christina Warren. If it has initials, it's Mike Rose --mr

Tuesday January 22, 2008 5:02

5:02

[Comment From BlueTBlueT: ]

I'm amused that you wouldn't publish my prediction of AAPL at $100. Fair and balanced like Fox News, right?

Tuesday January 22, 2008 5:02 BlueT

5:03

BlueT -- not sure what you mean? --mr

Tuesday January 22, 2008 5:03

5:03

[Comment From GuestGuest: ]

I'm reading on my iPhone now.

Tuesday January 22, 2008 5:03 Guest

5:03

[Comment From TomrakewellTomrakewell: ]

works on my iPhone.

Tuesday January 22, 2008 5:03 Tomrakewell

5:03

[Comment From mgetzskimgetzski: ]

it's working on the Touch

Tuesday January 22, 2008 5:03 mgetzski

5:03

[Comment From CarlosCarlos: ]

nope, doesn't work on the iphone. It's a blank space

Tuesday January 22, 2008 5:03 Carlos

5:03

Mixed results so far. :) --mr

Tuesday January 22, 2008 5:03

5:04

It's starting

Tuesday January 22, 2008 5:04

5:04

Opening statements. Openheimer and Cooke will be speaking

Tuesday January 22, 2008 5:04

5:05

Forward-looking statements... --mr

Tuesday January 22, 2008 5:05

5:05

Peter Openheimer starting opening remarks: Best quarter ever

Tuesday January 22, 2008 5:05

5:05

+2.5B over Q407 nice.... --mr

Tuesday January 22, 2008 5:05

5:06

35% revenue growth. 46% Intnernational increase year over eyar

Tuesday January 22, 2008 5:06

5:06

Net income up 57% = $1.76 a share

Tuesday January 22, 2008 5:06

5:06

57%+ net income over Q4. wow. Cash gen $3B

Tuesday January 22, 2008 5:06

5:06

Fantastic!

Tuesday January 22, 2008 5:06

5:06

2.32 million Macs, more than 700,000 from last December

Tuesday January 22, 2008 5:06

5:06

[Comment From waderwader: ]

it's all been published already... how? http://www.macrumors.com/2008/01/22/apple-1q-2008-results-record-1-58-billion-profit/

Tuesday January 22, 2008 5:06 wader

5:07

2.5x rate of growth

Tuesday January 22, 2008 5:07

5:07

There is a press release pre-call. --mr

Tuesday January 22, 2008 5:07

5:07

http://www.apple.com/pr/library/2008/01/22results.html

Tuesday January 22, 2008 5:07

5:07

38% portables increase, 51% desktop

Tuesday January 22, 2008 5:07

5:07

19% installed OS X base already on Leopard

Tuesday January 22, 2008 5:07

5:08

22.1 million iPods sold - record

Tuesday January 22, 2008 5:08

5:08

iPod Touch stats coming up

Tuesday January 22, 2008 5:08

5:08

"first mainstream wifi mobile platform" -- the touch. -- mr

Tuesday January 22, 2008 5:08

5:09

For those wondering why AAPL is tanking in after hours trading, it's likely the next quarter outlook. --MR.

Tuesday January 22, 2008 5:09

5:09

Responsible for overall increase of ASP of $181

Tuesday January 22, 2008 5:09

5:09

Like Mike said, it's the shrewd next quarter sales

Tuesday January 22, 2008 5:09

5:09

Apple maintaining share of players domestically, growing shares abroad for iPod. --mr

Tuesday January 22, 2008 5:09

5:10

Gaining marketshare for iPod in virtually all European and Asian countries. 2.5 million iPhones sold in the quarter iPhone reveneue = $241 million

Tuesday January 22, 2008 5:10

5:10

Apple TV deferred revenue way down

Tuesday January 22, 2008 5:10

5:10

ooo, now we talk retail. --mr

Tuesday January 22, 2008 5:10

5:10

$405m in segment margin, 1.8x previous q --mr

Tuesday January 22, 2008 5:10

5:10

(that's the stores) --mr

Tuesday January 22, 2008 5:10

5:11

Avg revenue per store $8.5 million up over $6.6 million

Tuesday January 22, 2008 5:11

5:11

ASP = Average Selling Price (for iPods) -- mr

Tuesday January 22, 2008 5:11

5:11

Over 50% custoemrs in stores buying Macs were new

Tuesday January 22, 2008 5:11

5:11

14,000 visitors per store per week - up 10 million customers

Tuesday January 22, 2008 5:11

5:12

34.4% total company gross margin - stronger than expcted

Tuesday January 22, 2008 5:12

5:12

Tax rate for the quarter 32%

Tuesday January 22, 2008 5:12

5:12

Cash balance up over 3 billion - for a total over over 18 billion

Tuesday January 22, 2008 5:12

5:12

$22 M in capitalized Leopard development last quarter, $1 M this quarter (so what are the programmers doing now? :) --mr

Tuesday January 22, 2008 5:12

5:13

March quarter outlook

Tuesday January 22, 2008 5:13

5:13

Predicting 29% growth, 32% gross margin

Tuesday January 22, 2008 5:13

5:14

Closing: very proud of record December quarter

Tuesday January 22, 2008 5:14

5:14

After hours: 139.50. Anyone else feeling poorer? I am. --mr

Tuesday January 22, 2008 5:14

5:14

Opening for questions

Tuesday January 22, 2008 5:14

5:15

I think a lot of people sold b/c of market instability - CW

Tuesday January 22, 2008 5:15

5:15

Morgan Stanley 1st Q --mr

Tuesday January 22, 2008 5:15

5:15

Morgan Stanley - 1st question, for March quarter looking at revenue declinations in the past, wondering why they are expecting more of a decline this upcoming quarter

Tuesday January 22, 2008 5:15

5:15

Asking why the seasonality projections are lower

Tuesday January 22, 2008 5:15

5:16

Openheimer - confident is business and strategy, saying a lot of nothing

Tuesday January 22, 2008 5:16

5:16

That's what we call not answering the question at all

Tuesday January 22, 2008 5:16

5:17

[Comment From TKTK: ]

Do you think apple shorted the outlook in order to crush it in Q2? This is plausible only during a time like today's market.

Tuesday January 22, 2008 5:17 TK

5:17

TK -- Apple's guidance is traditionally conservative over the past 7 quarters. -- mr

Tuesday January 22, 2008 5:17

5:17

Q2 - looking at Pro segment, what did it do for the Mac market and does it effect the outlook?

Tuesday January 22, 2008 5:17

5:18

The pro segment "the part we can measure is around software" - pro audio was up significantly and video "continued to perform very well"

Tuesday January 22, 2008 5:18

5:18

Asking about effect of iPhone rebate -- "customers appreciated it, they aren't saying what the impact was.

Tuesday January 22, 2008 5:18

5:18

Very confident in meeting 10 million goal for iPhones in 2008

Tuesday January 22, 2008 5:18

5:19

Discussing how to remedy inventory issues

Tuesday January 22, 2008 5:19

5:20

"The Mac market is on fire" -- tim cook

Tuesday January 22, 2008 5:20

5:20

Mac sales much higher than expected through the quarter, which affected inventory management - mr

Tuesday January 22, 2008 5:20

5:20

"Macintosh business is on fire!" --mr

Tuesday January 22, 2008 5:20

5:20

Has iPod reached saturation?

Tuesday January 22, 2008 5:20

5:20

Peter: believes it is bigger than just music, "first mainstream mobile platform"

Tuesday January 22, 2008 5:20

5:20

Looking at the Touch to take on a new marktshare

Tuesday January 22, 2008 5:20

5:21

[Comment From GabeGabe: ]

Mr- You stole my comment......jk i stiil love you

Tuesday January 22, 2008 5:21 Gabe

5:21

Gabe -- wasn't me that said it, it was Tim Cook.

Tuesday January 22, 2008 5:21

5:22

http://www.tuaw.com/2008/01/22/apple-posts-first-quarter-2008-results/

Tuesday January 22, 2008 5:22

5:22

Asking about the data to look at canibalization for iPhone/iPod Touch - not giving any concrete answers or on iPhone quarterly preditions

Tuesday January 22, 2008 5:22

5:22

Asking if ASP trend will hold? Apple is being coy, it increased squentially and year over eyar because of iPod Touh -- but they are being coy about predictions.

Tuesday January 22, 2008 5:22

5:23

Linearity of iPod sales v. seasonality?

Tuesday January 22, 2008 5:23

5:23

Data showed a weakening of the iPod in December and asking if that caused a rise in inventory.

Tuesday January 22, 2008 5:23

5:24

"The curve was similar to what we saw last year." In the U.S., in the gift buying season it was slightly different -- it was lower

Tuesday January 22, 2008 5:24

5:24

But they made up for it internationally

Tuesday January 22, 2008 5:24

5:24

Follow-up - is that indicative of US economy

Tuesday January 22, 2008 5:24

5:24

Not answering.

Tuesday January 22, 2008 5:24

5:24

"We give guidance that we have reasonable confidence in achieving." --mr

Tuesday January 22, 2008 5:24

5:24

Faster growth rate than last December

Tuesday January 22, 2008 5:24

5:25

US revenue grew 27% Y/Y, and growth rate is faster than last year. growth is ACCELERATING. --mr

Tuesday January 22, 2008 5:25

5:26

Question about the 18.5B in cash on the balance sheet for Peter -- can Apple buy back stock now pls? --mr

Tuesday January 22, 2008 5:26

5:26

Share buyback -- $18.5 billion cash, no debt - asking about uses of cash for shar buyack

Tuesday January 22, 2008 5:26

5:26

Yes, plz buy back!

Tuesday January 22, 2008 5:26

5:27

asking about confidence in guidance? Is product pipeline as exciting?

Tuesday January 22, 2008 5:27

5:27

How do you feel going forward?

Tuesday January 22, 2008 5:27

5:28

Peter: very confident in business, strategy, products - blah blah - party line

Tuesday January 22, 2008 5:28

5:28

MacBook Air - will it be incremental or canabilistic for new sales?

Tuesday January 22, 2008 5:28

5:28

Additive or replacement?

Tuesday January 22, 2008 5:28

5:29

Great customer reaction, too early to tell

Tuesday January 22, 2008 5:29

5:29

Mmm... cannibal laptops --mr

Tuesday January 22, 2008 5:29

5:29

Guidance for iPods?

Tuesday January 22, 2008 5:29

5:29

[Comment From AndreaAndrea: ]

Did not report the buyback answer. That was NO. Preferred strategy is to keep the cash to stay flexible.

Tuesday January 22, 2008 5:29 Andrea

5:29

Andrea -- sure, but $19B??? --mr

Tuesday January 22, 2008 5:29

5:29

[Comment From AlexJAlexJ: ]

What is the chance of apple giving dividend on shares?

Tuesday January 22, 2008 5:29 AlexJ

5:29

AlexJ -- slim and/or none --mr

Tuesday January 22, 2008 5:29

5:30

[Comment From SvESvE: ]

$19B buys a lot of black turtlenecks

Tuesday January 22, 2008 5:30 SvE

5:30

Looking at what drives Mp3 market are innovative products and seasonal buying mrket. Looks for a decline from December to March, but think its the best iPod line ever.

Tuesday January 22, 2008 5:30

5:30

[Comment From anonanon: ]

Will MacBook Air support installation of Windows XP via boot camp using the exteral USB drive or Remote Disk?

Tuesday January 22, 2008 5:30 anon

5:30

Anon -- we discussed this --mr

Tuesday January 22, 2008 5:30

5:30

Trying to figure out flat iPod results in the Us

Tuesday January 22, 2008 5:30

5:31

Set out to acheive 3 things: hold high share in the US, grow share internationally - done both

Tuesday January 22, 2008 5:31

5:31

Remote disk for XP installs -- no, external -- probably -- http://www.tuaw.com/2008/01/18/reader-questions-can-you-install-xp-via-remote-disk-on-a-macboo/ --mr

Tuesday January 22, 2008 5:31

5:31

[Comment From CBCB: ]

they've been trying to say that iPod sales have been flat for like 3 years... this is nothing new. Eventually everyone will have one or three iPods

Tuesday January 22, 2008 5:31 CB

5:31

22 million iPods set company record for comapny's goal to relase more

Tuesday January 22, 2008 5:31

5:31

3rd thing - establish new type of iPod for iPod Touch -

Tuesday January 22, 2008 5:31

5:32

CB -- sales aren't flat, sales GROWTH is flat. It's the differential. --mr

Tuesday January 22, 2008 5:32

5:32

[Comment From ChrisChris: ]

Will we see an update to the MacBook Pro line that could possibly include a multi touch trackpad, keyboard redesign, and possible case design? This is all way overdue.

Tuesday January 22, 2008 5:32 Chris

5:32

Mainstream mobile wi-fi - bussword of the day

Tuesday January 22, 2008 5:32

5:32

Chris -- they don't usually discuss product plans during the call. --mr

Tuesday January 22, 2008 5:32

5:32

oops, that is buzzword

Tuesday January 22, 2008 5:32

5:33

Mac Channels and Best Buy distribution

Tuesday January 22, 2008 5:33

5:33

286 Best Buy stores -- electd to expand to 600 over the next 6 months

Tuesday January 22, 2008 5:33

5:33

This is HUGE

Tuesday January 22, 2008 5:33

5:33

[Comment From TKTK: ]

Any comments on current plummeting stock price?

Tuesday January 22, 2008 5:33 TK

5:33

asking about itunes rentals and to drive Apple TV or for profitability

Tuesday January 22, 2008 5:33

5:33

Not answering

Tuesday January 22, 2008 5:33

5:33

TK -- no. They probably aren't watching the ticker right now. --mr

Tuesday January 22, 2008 5:33

5:34

Bryan Walls - no, Best Buy overtook CompUSA years ago in terms of relevancy

Tuesday January 22, 2008 5:34

5:34

[Comment From Bryan WallsBryan Walls: ]

Wonder if CompUSA death has/will have any impact -- guess BB should more than balance.

Tuesday January 22, 2008 5:34 Bryan Walls

5:34

Asking about viability of MacBook Air as more than a niche product - stock non-answer

Tuesday January 22, 2008 5:34

5:35

[Comment From tom.landytom.landy: ]

any mention of international itunes rentals yet or will we have to wait til nxt quarter?

Tuesday January 22, 2008 5:35 tom.landy

5:35

They won't comment on what they expect. Too new

Tuesday January 22, 2008 5:35

5:35

MacBook Airs are very strong

Tuesday January 22, 2008 5:35

5:35

[Comment From KinkadiusKinkadius: ]

any statements made about the iPhone/iPod Touch SDK?

Tuesday January 22, 2008 5:35 Kinkadius

5:35

Kink -- not yet. --mr

Tuesday January 22, 2008 5:35

5:35

No INE despite increase of cash because of rate reduction

Tuesday January 22, 2008 5:35

5:35

[Comment From James KohnJames Kohn: ]

MacBook Pro question needs to get answered because there is an issue that "top of line" MacBook Pro does NOT have features of MacBook Air... and Apple is only major mfg that doesn't have Penryn Laptop announced

Tuesday January 22, 2008 5:35 James Kohn

5:36

Leopard on March quarter and expectations - comapred with Tiger

Tuesday January 22, 2008 5:36

5:36

James -- the analysts aren't getting into that level of hardware detail. --mr

Tuesday January 22, 2008 5:36

5:36

[Comment From AaplholderAaplholder: ]

Any news about opening stores in other countries such as Philippines?

Tuesday January 22, 2008 5:36 Aaplholder

5:36

Leopard off to huge start, 19% adoption rate

Tuesday January 22, 2008 5:36

5:36

AAplholder -- no, not that I heard. --mr

Tuesday January 22, 2008 5:36

5:36

Sales going back to Tiger were $100 million, in second quarter were $35 million. Leopard was $170 million

Tuesday January 22, 2008 5:36

5:37

Not saying what they think the results will be, down sequentially, not sure if it will follow Tiger or not.

Tuesday January 22, 2008 5:37

5:37

[Comment From cl191cl191: ]

did they mention when 10.5.2 is going to come out?

Tuesday January 22, 2008 5:37 cl191

5:37

cl191 - no

Tuesday January 22, 2008 5:37

5:37

cl -- no. They don't make product announcements during the earnings call. --mr

Tuesday January 22, 2008 5:37

5:37

Contributing Leopard to increased Mac sales

Tuesday January 22, 2008 5:37

5:38

Discussing Japan's bounceback

Tuesday January 22, 2008 5:38

5:38

Very happy, they have often struggled but theyhad a huge reception to iMacc - 6% to 10% year over year. Huge iPod Touch response

Tuesday January 22, 2008 5:38

5:38

"Extremely happy with last quarter in Japan... one data point doesn't make a trend, but iMac tremendous -- desktop share from 6% to 10% y/y" --mr

Tuesday January 22, 2008 5:38

5:39

Christina and I are typing 1000 miles apart, in case you were wondering. :) --mr

Tuesday January 22, 2008 5:39

5:39

Yes - sorry for the double types. Asking about revenue sharing

Tuesday January 22, 2008 5:39

5:39

[Comment From AaplholderAaplholder: ]

Do they have a reason for charging $20 for touch update?

Tuesday January 22, 2008 5:39 Aaplholder

5:39

They are not discussing the carrier agreements

Tuesday January 22, 2008 5:39

5:39

aapl -- haven't heard it asked yet, but would like to know myself. --mr

Tuesday January 22, 2008 5:39

5:40

MR and appleholder - I think it was do to their accounting practices

Tuesday January 22, 2008 5:40

5:40

More not answering of specific revenue predictions. 27% revenue growth in US, 46% outside US

Tuesday January 22, 2008 5:40

5:40

Some rumors indicating 10.5.2 on Friday, has not been mentioned in call --mr

Tuesday January 22, 2008 5:40

5:41

When is Asia getting iPhone? Sometime in 2008 and additional Euro countries

Tuesday January 22, 2008 5:41

5:41

Nothing to announce onChina or Japan

Tuesday January 22, 2008 5:41

5:41

[Comment From AaplholderAaplholder: ]

but isnt that a little too much? they didnt charge iphone users?

Tuesday January 22, 2008 5:41 Aaplholder

5:42

aapl -- the iPhone is accounted differently

Tuesday January 22, 2008 5:42

5:42

Aapleholder - because they write off future revenue using a differetn practice, b/c of carrier agreements

Tuesday January 22, 2008 5:42

5:42

Not projecting volumes or details on Apple TV. Hoping it does well

Tuesday January 22, 2008 5:42

5:42

[Comment From AlexJAlexJ: ]

How long are Apple tied to current carriers?

Tuesday January 22, 2008 5:42 AlexJ

5:42

AlexJ - At&T - 5 years

Tuesday January 22, 2008 5:42

5:43

not sure about other carriers

Tuesday January 22, 2008 5:43

5:43

504K Mac sales in stores, 64% growth year over year

Tuesday January 22, 2008 5:43

5:43

No real answer for flat iPod sales in US - come on, it's cos the installed base is huge and the Classic wasn't enough of an upgrade

Tuesday January 22, 2008 5:43

5:43

"more than half" sold to new Mac users at retail --mr

Tuesday January 22, 2008 5:43

5:43

Expecting to open 35 - 40 stores in Fiscal 2008

Tuesday January 22, 2008 5:43

5:44

Half 204 stores outside US

Tuesday January 22, 2008 5:44

5:44

First stores in China!

Tuesday January 22, 2008 5:44

5:44

More about demand curve for iPod.

Tuesday January 22, 2008 5:44

5:44

[Comment From BaxterG4BaxterG4: ]

I don't think that the 5 years with AT&T number is confirmed, is it?

Tuesday January 22, 2008 5:44 BaxterG4

5:44

http://www.usatoday.com/tech/wireless/2007-05-21-at&t-iphone_N.htm

Tuesday January 22, 2008 5:44

5:45

"AT&T has exclusive U.S. distribution rights for five years — an eternity in the go-go cellphone world. And Apple is barred for that time from developing a version of the iPhone for CDMA wireless networks." --USAtoday

Tuesday January 22, 2008 5:45

5:45

Thanks Mike

Tuesday January 22, 2008 5:45

5:45

I even commented on that article!

Tuesday January 22, 2008 5:45

5:45

For our Italian friends...

Tuesday January 22, 2008 5:45

5:45

[Comment From WhispererWhisperer: ]

http://www.theapplelounge.com/iphone/iphone-umts-in-italia-con-tim-ci-siamo-quasi/

Tuesday January 22, 2008 5:45 Whisperer

5:45

No word on Canadian iPhone

Tuesday January 22, 2008 5:45

5:46

[Comment From AaplholderAaplholder: ]

How about after the two years agreement with the costumer? what will happen after that in terms on unlocking the iphone?

Tuesday January 22, 2008 5:46 Aaplholder

5:46

Aaplholder - they have never made that clear

Tuesday January 22, 2008 5:46

5:46

aapl -- not clear. If there is an unlock available presumably you could switch carriers. --mr

Tuesday January 22, 2008 5:46

5:47

likely as not that visual voicemail, google maps nav will never work on other GSM carriers. --mr

Tuesday January 22, 2008 5:47

5:47

[Comment From ReedReed: ]

When exactly did the AT&T exclusivity period begin? Five years from the day the iPhone went on sale in the US, from the day the contract was signed with AT&T, FCC approval???

Tuesday January 22, 2008 5:47 Reed

5:47

This guy on the call is mixing up flat iPod with Mac sales and that's a misnomer

Tuesday January 22, 2008 5:47

5:47

Reed - almost positive June 29

Tuesday January 22, 2008 5:47

5:47

Reed: Agree with CW, I believe that's from product intro. --MR

Tuesday January 22, 2008 5:47

5:48

looking at flat rates as being a response to iphone's popularity

Tuesday January 22, 2008 5:48

5:49

asking about iPhone channel inventory -- they aren't talking about it because they oly have 1 channel prouct in each of their first four countires

Tuesday January 22, 2008 5:49

5:49

[Comment From AndreaAndrea: ]

and for those non italians: the linked article says february expected announcement of iPhone for Italy and Spain, in an UMTS version!!

Tuesday January 22, 2008 5:49 Andrea

5:49

[Comment From UpTownUpTown: ]

I wonder if there is a provision for Apple to buy out of the AT&T contract. How would we know? Would it appear in notes to the financials. Is it germane.

Tuesday January 22, 2008 5:49 UpTown

5:50

Up: Details of the contracts aren't part of the call. --mr

Tuesday January 22, 2008 5:50

5:50

[Comment From stevesteve: ]

why in the UK are we so much more expensive?

Tuesday January 22, 2008 5:50 steve

5:50

4 million iPhones were "to-date" as of Keynote. 3.7 cumitively from Q2.

Tuesday January 22, 2008 5:50

5:50

Steve: Your dratted strong currency. :) --mr

Tuesday January 22, 2008 5:50

5:50

excuse me, meant Q4

Tuesday January 22, 2008 5:50

5:50

Steve - because our dollar sucks!

Tuesday January 22, 2008 5:50

5:50

Asking about Euro v. US uptake -- not wanting to respond

Tuesday January 22, 2008 5:50

5:50

and VAT. --mr

Tuesday January 22, 2008 5:50

5:51

Is 3G imporatn to 10 million outlook?

Tuesday January 22, 2008 5:51

5:51

"we don't talk about new product"

Tuesday January 22, 2008 5:51

5:51

very confident in meeting 10 million in 2008

Tuesday January 22, 2008 5:51

5:51

Nothing to announce for future regions

Tuesday January 22, 2008 5:51

5:51	What product is most important to Apple revenue growth this year? iPhone ( 39% ) iPod ( 3% ) Laptops ( 41% ) Desktops ( 5% ) iTunes Store ( 1% ) Apple TV + rentals ( 11% ) Tuesday January 22, 2008 5:51

5:52

Is component cost creeping up? No, cost should improve - as LCD and HD start to balance out.

Tuesday January 22, 2008 5:52

5:52

Thanks for your poll answers everyone! --mr

Tuesday January 22, 2008 5:52

5:52

[Comment From RichRich: ]

iPhone most important, because of deferred revenue impact.

Tuesday January 22, 2008 5:52 Rich

5:52

Excellent point Rich. --mr

Tuesday January 22, 2008 5:52

5:52

Rich - good call

Tuesday January 22, 2008 5:52

5:53

That changes my answer!

Tuesday January 22, 2008 5:53

5:53

Poll closed

Tuesday January 22, 2008 5:53

5:53

Ooo! Shaw Wu Alert! "Boom!" --mr

Tuesday January 22, 2008 5:53

5:53

w00t!

Tuesday January 22, 2008 5:53

5:54

iMac had huge momentum and the total desktops grew 53% over 5x market rate of growth of only 10%

Tuesday January 22, 2008 5:54

5:54

Guidance abut seasonality (because March sucks for retail)

Tuesday January 22, 2008 5:54

5:54

is it too early to comment on iPhone seasonality

Tuesday January 22, 2008 5:54

5:54

[Video file]

YouTube: Yz1-cPx0cIk Play

Tuesday January 22, 2008 5:54

5:54

oops sorry gang. :) --mr

Tuesday January 22, 2008 5:54

5:55

That was the keynote in 60 seconds. Wasn't meant to go there. --mr

Tuesday January 22, 2008 5:55

5:55

How many retail points was Mac avaialable -- up to 9500 up from 7700 a year ago

Tuesday January 22, 2008 5:55

5:55

doubling Best Buy stores

Tuesday January 22, 2008 5:55

5:55

No NBC yet Matt

Tuesday January 22, 2008 5:55

5:56

2500 Euro iPhone storefronts and 2100 between Apple and ATT stores in US

Tuesday January 22, 2008 5:56

5:57

[Comment From Mike E.Mike E.: ]

My question is very simple, and that is if they have created a sub-notebook for a niché area of market, wouldn't a sub-tower or mini tower also make sense for them to get into. Also, what are they going to be doing about the Whole AEBS + Time Machine issue that has cropped up?

Tuesday January 22, 2008 5:57 Mike E.

5:57

Mike, good questions, unfortunately the analysts aren't asking. --mr

Tuesday January 22, 2008 5:57

5:58

888-203-1112 - 4273792 if anyone wants a telephone replay

Tuesday January 22, 2008 5:58

5:58

starting at 5 PM PST

Tuesday January 22, 2008 5:58

5:58

Also the quicktime replay will be up shortly at http://apple.com/investor

Tuesday January 22, 2008 5:58

5:58

[Comment From HspHsp: ]

off topic but, this "cover it live" business is pretty cool, how come it wasn't used for macworld?

Tuesday January 22, 2008 5:58 Hsp

5:58

And that's the call!

Tuesday January 22, 2008 5:58

5:58

HSP: We didn't have time to test it pre-macworld

Tuesday January 22, 2008 5:58

5:59

HSP - but we agree, this is really nice

Tuesday January 22, 2008 5:59

5:59

and as it turned out there were some config issues anyway. We like it though! --mr

Tuesday January 22, 2008 5:59

5:59

[Comment From AndreaAndrea: ]

Fake steve used it (or tryed, but was ... can we say slashdotted?)

Tuesday January 22, 2008 5:59 Andrea

5:59

It wasn't a true capacity issue (they report) but a config issue. --mr

Tuesday January 22, 2008 5:59

6:00

Alright guys - we're going to close this out, you can read the transcript on teh blog and post further comments on the post. We'll be writing up a recap post a bit later.

Tuesday January 22, 2008 6:00

6:00

Thanks for joining us!

Tuesday January 22, 2008 6:00

6:00

This Live Blog has now ended.